Digit Insurance raises ₹315 crores from Fairfax Holdings

Digit Insurance raises ₹315 crores from Fairfax Holdings
Digit Insurance raises ₹315 crores from Fairfax Holdings

Online insurance startup Digit Insurance has raised ₹315 in the second round of funding from existing investor Fairfax Holdings. The funds have been raised by GoDigit Inforworks, the parent company of Digit Insurance, ₹310 crores will be funnelled into Digit Insurance, while ₹5 crores will go to the parent company.

The funds will be used to expand the company’s footprints across the country, especially the smaller towns, along with focusing on the development of the tech platform and expanding the staff strength.

“We are looking at major expansion opportunities for our product line as well as our locations of operation and staff strength, looking at the growth path we felt the need for this second round of funding,” said Kamesh Goyal who is the chief executive officer and the other major shareholder after Fairfax in the company.

Fairfax has invested a total of ₹665 crores in the company, Prem Watsa owned Fairfax had earlier invested ₹350 crores in the company in 2017.

Pune-based Digit Insurance, a general insurance company was incorporated by Kamlesh Goyal in 2016, while the company began operations in November 2017. The company provides various insurance products including car insurance, travel insurance, mobile insurance, jewellery insurance, and commercial vehicle insurance. Other insurance products like bike insurance, health, insurance, and home insurance are expected soon.

The company claims to settle claims within 10 to 20 minutes over a phone call, is targeting to cut the time to seven minutes. It also claims to settle about 20 claims in a day over the phone, and it is looking to scale it up to around 100.

Currently, the company has  525 employees, and it is looking to add another 200 by September this year. Among its corporate partners are some of the big names like Flipkart, Amazon, Paytm, ClearTrip, among others. Digit Insurance has already reached the mark of 6,000 policies a day.

Other players competing with Digit insurance in this space include Coverfox, PolicyBazaar, among others.

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